3 Dividend Stocks Ideal for Retirees
So you want a stock for your retirement portfolio with a good dividend yield -- well covered by earnings and free cash flow -- and you want to buy it on a good valuation too? Look no further than German industrial giant Siemens (OTC: SIEGY), construction and mining machinery company Caterpillar (NYSE: CAT), and food company Hormel Foods (NYSE: HRL). All three have strong track records of rewarding investors with dividends and good growth prospects.
Investors can gain exposure to Europe's largest industrial company via a U.S. listing -- not a bad idea when the stock is yielding around 3.4%. While its fierce rival, General Electric, has floundered in recent years, Siemens' management has patiently restructured its portfolio toward long-term growth markets such as industrial (factory) automation and process automation (automated control of raw materials). The company is the global leader in both markets.
If you believe in the increasing penetration of automation and that robotics in manufacturing will be enhanced further by the adoption of Internet of Things functionality, then you believe Siemens has a bright future.
Source Fool.com
